BILL NUMBER: AB 27	CHAPTERED  10/10/99

	CHAPTER   950
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 8, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JUNE 23, 1999
	AMENDED IN ASSEMBLY   MAY 28, 1999
	AMENDED IN ASSEMBLY   APRIL 28, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Assembly Member Nakano

                        DECEMBER 7, 1998

   An act to amend and renumber Sections 101800, 101805, 101810,
101815, and 101820 of, to amend and renumber the heading of Part 5
(commencing with Section 101800) of, and to add  Part 6 (commencing
with Section 101840) to Division 101 of, the Health and Safety Code,
relating to public social services, and making an appropriation
therefor.

      (Approved by Governor October 10, 1999.  Filed with
Secretary of State October 10, 1999.)

   I am signing AB 27, which requires the California Health and Human
Services Agency to prepare a long term care information
infrastructure blueprint.
   However, I am deleting the $149,000 General Fund appropriation
from the bill and instead directing the Secretary of Health and Human
Services Agency to implement the provisions of AB 27 within existing
resources.
                                                 GRAY DAVIS, Governor


	LEGISLATIVE COUNSEL'S DIGEST


   AB 27, Nakano.  Long-term care infrastructure blueprint.
   Existing law provides for the provision of various long-term care
services.
   This bill would require the California Health and Human Services
Agency to develop a long-term care infrastructure blueprint, and to
contract with a consulting firm possessing specified qualifications
for the preparation of a technical analysis of infrastructure
development costs relating to long-term care.  This bill would
require the agency to report to the Legislature on the results of the
technical analysis and the progress on the development of the
infrastructure blueprint on or before January 1, 2001.
   The bill would appropriate $149,000 from the General Fund to the
California Health and Human Services Agency for the purpose of
funding the preparation of the long-term care infrastructure
blueprint and technical analysis of infrastructure development costs
required by the bill.
   Existing law provides that certain philanthropic support is not
treated as revenue allocable to the cost of care provided by a health
facility or clinic.
   This bill would make nonsubstantive, technical changes to those
provisions.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The heading of Part 5 (commencing with Section 101800)
of Division 101 of the Health and Safety Code is amended and
renumbered to read:

      PART 6.  OTHER

  SEC. 2.  Section 101800 of the Health and Safety Code is amended
and renumbered to read:
   101980.  This chapter shall be known and may be cited as the
Voluntary Health Facility and Clinic Philanthropic Support Act.
  SEC. 3.  Section 101805 of the Health and Safety Code is amended
and renumbered to read:
   101983.  The Legislature finds and declares that, while there
continues to be a need to focus on the deficiencies in the health
care system and on corrective reform measures that might be taken,
there is also need for focus on the enhancement of its strengths.
Existing philanthropic support for health facilities and clinics is a
strength that must be preserved and enhanced under any reform
measure for all of the following reasons:
   (a) Philanthropy imbues members of the community with a sense of
pride in their voluntary nonprofit health facilities and clinics and
creates a setting in which members of the community are willing to
devote time and effort to improve health care available in the
community in a way that government regulation could never replace.
   (b) Philanthropy allows voluntary nonprofit institutions to
conduct research and to  engage in other innovative efforts to
improve health care in California.
   (c) Philanthropy provides required discretionary dollars for
voluntary nonprofit institutions, that, in part, substitute for the
absence of profits.
   (d) Philanthropy allows hospitals to replace worn out and obsolete
facilities when, in a period of high inflation, historical costs
accumulated through depreciation are totally insufficient to provide
for the replacement.
   (e) Philanthropy pays for necessary expenditures that otherwise
would have to be paid by patients or by government.
   (f) Philanthropy may be discouraged by certain shortsighted
actions of administrative agencies that, while purporting to serve a
short-term purpose, seriously deter the vast benefits to the health
care field inuring directly from philanthropy and voluntarism.
   (g) Recent amendments to the federal tax laws to  broaden the use
of the standard deduction also have the effect of eliminating
important incentives for philanthropy.
  SEC. 4.  Section 101810 of the Health and Safety Code is amended
and renumbered to read:
   101985.  It is, therefore, the intent of the Legislature to create
an environment in which philanthropy and voluntarism in the health
care field and the vast benefits arising from it for the citizens of
California can be encouraged.  The Legislature hereby declares it to
be the policy of this state that philanthropic support for health
care be encouraged and expanded, especially in support of
experimental and innovative efforts to improve the health care
delivery system.
  SEC. 5.  Section 101815 of the Health and Safety Code is amended to
read:
   101987.  For purposes of any state law, whether enacted before or
on or after January 1, 1980, that in any manner provides for
regulation, review, or reporting of the budget, rates, or revenues of
health facilities, as defined in Section 1250, or clinics, as
defined in Section 1204, including the provisions of Part 1.7
(commencing with Section 440), none of the following shall be treated
directly, or indirectly, as revenues allocable to the cost of care
provided by the health facility or clinic:
   (a) A donor-designated or restricted grant, gift, endowment, or
income therefrom, as defined in Section 405.423(b) of Title 42 of the
Code of Federal Regulations, insofar as permitted by federal law.
   (b) A grant or gift, or income from a grant or gift, that is not
available for use as operating funds because of its designation by
the governing board or entity of the health facility or clinic.
   (c) A grant or similar payment that is made by a governmental
entity and that is not available, under the terms of the grant or
payment, for use as operating funds.
   (d) Amounts attributable to the sale or mortgage of any real
estate or other capital assets of the health facility or clinic that
it acquired through a gift or grant, and that are not available for
use as operating funds under the terms of the gift or grant or
because of designation as provided in subdivision (b).
   (e) A depreciation fund that is created by the health facility or
clinic in order to meet a condition imposed by a third party for the
third party's financing of a capital improvement of the health
facility or clinic, provided the fund is used exclusively to make
payments to the third party for the financing of the capital
improvement.
   (f) Funds used to defray the expense of fundraising.
  SEC. 6.  Section 101820 of the Health and Safety Code is amended
and renumbered to read:
   101989.  No state law shall be construed to discourage
philanthropic support of health facilities and clinics, or to
otherwise hinder the use of this support for purposes determined by
the recipients to be in the best interests of the physicians and
patients it serves.
   However, in enacting this chapter and Section 14106.2 of the
Welfare and Institutions Code, the Legislature does not intend to
place any restrictions on cost containment measures relating to
health facilities that may be enacted in the future.
  SEC. 7.  Part 5 (commencing with Section 101950) is added to
Division 101 of the Health and Safety Code, to read:

      PART 5.  LONG-TERM CARE INFRASTRUCTURE BLUEPRINT

   101950.  (a) The California Health and Human Services Agency shall
develop a long-term care infrastructure blueprint to analyze how
information technology could be utilized to do all of the following:

   (1) Provide consistent information and referrals to consumers'
requests for information on long-term care service availability and
eligibility requirements.
   (2) Develop a core client services record that contains key
assessment and care planning information.
   (3) Transmit core client information from one agency to another
when making a service referral.
   (4) Create a long-term care data warehouse at state level to
facilitate state and regional long-term care strategic planning,
development, and evaluation.
   (b) The blueprint developed shall include all of the following:
   (1) A technical analysis of the data currently being collected by
public long-term care programs.
   (2) An evaluation of the information technology currently
available to accomplish tasks specified in subdivision (a).
   (3) A cost-benefit analysis of the information technology options
identified.
   (4) A proposal of incremental steps, and the corresponding
budgetary outlays, required to develop the long-term care information
infrastructure.
   (c) The agency shall contract with a consulting firm that has been
successful in assisting other states in undertaking similar
infrastructure building endeavors, or that can demonstrate comparable
experience, for preparation of the technical analysis.
   (d) The agency shall ensure that the planning, development, and
implementation of changes that occur as a result of this section
encourage and allow concurrent implementation and operation of a
long-term care integration pilot project consistent with Article 4.3
(commencing with Section 14139.05) of Chapter 7 of Part 3 of Division
9.
   (e) The agency shall report to the Legislature, in writing, on or
before January 1, 2001, regarding the results of the technical
analysis and the progress made on the development of the long-term
care infrastructure blueprints.
   (f) The sum of one hundred forty-nine thousand dollars ($149,000)
is hereby appropriated from the General Fund to the California Health
and Human Services Agency for the purpose of providing funds to
contract with an outside consultant who shall be responsible for
preparing the long-term care infrastructure blueprint and technical
analysis of infrastructure development costs required by this
section.
